Golf Course investing

I have found a golf course owner that wants to sell. i am not sure what qualities to look for in a golf course that makes it “special.” I am a residential developer but not a golfer so I am looking for a golfers perspective. I see the possibility for developing around it, but once again i want to make the course one that will draw people. Need some advice, Thank you

Got a scorecard? Publish it or send it to me. What is par? How long of a course is it? What is the course rating? Lots of questions.

Da Wiz

Hello memafo,

Golf Couse investing is an interesting and diverse business. On one side you have adjoiningg lands that represent a high level of desirabliltiy for residential development. In many areas, golf courses represent the only expansive green areas and people will generally pay a higher amount for these type of lots. This seems to be your interest in the golf course.

On the other hand, the value of those lots goes back to the success of the golf course business itself. A premium lot sits on a successful golf course. Without experience and a strong understanding or golf course management, I would think that you are more likely to fail than succeed at the golf course business. We are much like you in that our interests in golf courses are for the adjoing residential lots that might be available rather than the golf course business itself. Here is how we approach it, maybe it is something that will work for you.

First thing is that we focus on under performing courses or mis managed courses that have under valued adjoing land. As with most real estate investment, it is the under valued property that represents the best opportunity. We also focus on courses that are in strong markets or developing markets and that have both course facilties and banquet/restaurant facilities. There may also be driving ranges, proshops, bars, etc attached to golf course properties. Each represents another revenue channel and the more that is present the more possibilities for a profitable facility.

The second thing we do is recognize that we can build houses but we are not prepared to succeed on the golf course business or the restaurant/banquet facilities. We have aligned oursevles with joint venture partners who are experts at golf course establishment. The group we do the venture with specializes in taking under used/mismanged/undervalued golf courses with banquest facilities and revitalizing them. When we go into the venture, we share the costs of the property but we focus on the residential lot development and they focus on the golf course management.

The third thing we do is exit. Once we sell off the homes, we are out with our take on the deal. The golf course group only stays in till the point that the golf course’s value has increased and then they liquidate too. It will usually take them 3-5 years before they exit.

I hope this helps.

JAAMK- Would this third party that does the golf course business have a website or way I can get information from them? and thanks for the info.

There are several big players that do a lot of golf course financing…feel free to shoot me